Trade Patterns GBP/CHF, CHF/JPY
|GBP/CHF 4H Chart: Possible retracement
After reaching the monthly pivot point at 1.3459 on January 23, the British Pound began to depreciate substantially against the Swiss Franc during the following weeks.
As a result, the currency pair made a U-turn from the lower boundary of a junior channel on March 2 and has formed a new channel up. This pattern is unlikely to hold, as the Sterling had breached the lower line.
As for near future, the exchange rate could make a retracement south and this decline is likely to encounter a support cluster set by the weekly and the monthly PPs with the combination of the 55-, 100, and the 200 –hour SMAs near 1.3069.
CHF/JPY 4H Chart: Stranded between PPs
The Swiss Franc has been constrained by a descending channel against the Japanese Yen after hitting the upper boundary of a junior channel on February 2.
The currency exchange rate has been stranded between pivot points and SMAs. The weekly R1 and the 100– hour simple moving average was restricting the rate from making any upward move while the weekly PP combined with the 55-hour SMA was supporting the pair from falling.
A breakout is expected from the aforementioned cluster to either direction. In addition, technical indicators favour a breakout through the upper boundary of the junior pattern.
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